Litecoin buon vendita

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Some Bitcoin enthusiasts have been annoyed with Dogecoin's rise in popularity. While some of this negativity stems from seeing Dogecoin as a mockery, the altcoin's fast production cycle lets it serve as a glimpse into the future of Bitcoin mining.

The mining process, wherein users confirm blocks of transactions in exchange for a small amount of the digital currency , occurs much faster for Dogecoin than for Bitcoin. Based on the price per Dogecoin, the process of mining the currency will likely stop being profitable in about a year, whereas Bitcoin will keep rewarding miners in a profitable manner for a much longer time.

At this point, miners may simply stop working because they have no financial incentive to stay. If that happens, it means the end of Dogecoin.

There's debate in the digital currency community about what will need to be done to keep people mining transactions on the Bitcoin and altcoin networks. With Bitcoin, some have considered implementing a transaction fee to reward miners after the current incentive expires. Since Dogecoin will hit this mark sooner, Dogecoin "is the canary in the coal mine," Doernberg says. That cycle continues until the mining reward hits 10, Doge, which will be the constant reward going forward.

Prior to November , it was 50 bitcoins. Most Bitcoin transaction blocks are confirmed by pools of miners, so the reward is split among a large number of individuals. Since the Dogecoin community doesn't want to institute higher, mandatory transaction fees, Doernberg says there are a few other options being discussed.

One is merge-mining, which is the process of linking one cryptocurrency's mining to a separate cryptocurrency's mining, says Doernberg. Charlie Lee, the creator of Litecoin, recently suggested that Dogecoin could link up with Litecoin. Mining hardware would be able to authenticate transactions on both currencies' public ledgers and rewards would be doled out in both Dogecoin and Litecoin.

Another solution, says Doernberg, could be a community mining project raising money to subsidize cheap mining software to give out to individuals on USB sticks.

The Dogecoin community, which is very passionate, would likely participate to help the network and the USB mining hardware would use a negligible amount of electricity, he says. The last option would require switching the mining algorithm, so that no other miners can work on the Dogecoin network using the same type of algorithm.

Dogecoin and some other altcoins use an algorithm called scrypt, and Bitcoin uses SHA, which must be mined with application specific integrated circuits ASICs.

In this way, people who wanted to mine Dogecoin would have to purchase specifically-built machines, says Doernberg.